The Changing Economy
Before the 1920s, most Americans didn't like spending more money than what they had to. Families were more worried about providing food and shelter. For years, Americans had sacrificed during war by planting victory gardens, rationing food, having meatless days, and recycling. Since most technology had been too expensive until this time, Americans were used to making their own clothes and food. After WWI, America industries were booming in the 1920s to help rebuild our Allies. Now with Americans working in factories, earning better wages, and with the cost of “luxuries” decreasing because of the assembly line, Americans lived more freely. Like no other time in American history, the 1920s was a decade of spending- a “consumer culture” with society buying not only their needs but also wants.
Buying on credit
The desire to own all of the latest status symbols (something that showed that you were in a certain class- like upper/middle/lower) like cars, radios, and attending sporting events led to Americans going into debt (spending more money than what they had). Before the Great War, having debt was looked down upon. Usually if a family wanted to buy something like a car, they would have to save up their income and wait to buy it. But in the 1920s that changed, “Buy now, pay later" became the motto of many middle class Americans. Banks and companies started to offer the ability to buy a product in installments. Buyers would pay some money right away and then pay a little bit every month (sort of like how credit cards work today).
Impact of Advertisers
Advertising became an important job in order to sell these new products. Advertisers tried to convince Americans that the product was needed (make a want seem like a need). The famous example was the campaign for Listerine (mouth wash). Using a seldom heard term for bad breath — halitosis — Listerine convinced thousands of Americans to buy their product. Consumers might not have known what halitosis was, but they surely knew they did not want it.
Advertisers were trying to create demand- they wanted Americans to go out and buy their product because they thought they needed it. Radio became an important new means of communicating a business message. Many companies used Hollywood film stars to sell products. Advertisers used campaigns to convince the public that “they would hardly miss the money” by making payments by installments trying to influence Americans to buy these wants.
Activities
Outside of just buying material goods, more Americans were spending money on fun activities and fads. One of the most popular trends of the decade was the dance marathon. The longest marathons lasted thirty-six hours or more. The first Miss America Pageant was staged in Atlantic City in 1921. One of the most bizarre fads was flagpole sitting. The object was simple: be the person who could sit atop the local flagpole for the longest period of time. Fifteen-year-old Avon Foreman of Baltimore set the amateur standard — ten days, ten hours, ten minutes, and ten seconds.
Other fads included crossword puzzles, book of the month clubs and investing in new magazines like Time and Reader’s Digest. However, the most popular craze of the 1920s was the growth of movies. Initially movies were silent action films, but as the decade continued, so did the technology. The 1920s produced the first movie with sound- The Jazz Singer and by 1928, Walt Disney introduced Mickey Mouse in Steamboat Willie.
Spectator sports also were a luxury Americans enjoyed earning the 1920s another nickname- the “Golden Age of Sports”. While boxing was popular with stars like Jack Dempsey, golf with Bobby Jones and Walter Hagen, team sports really were popular. Professional football began in the 1920s, and baseball became Americans pastime with superstars like Babe Ruth and Ty Cobb. Not only did Americans spend their time and money going to these events, they also gathered around the radio to listen if they could not attend. Americans also tuned in to hear other exciting news in 1927 when Charles Lindbergh completed a solo nonstop flight across the Atlantic Ocean in his plane the Spirit of St. Louis placing him as an American idol.
Results
The nation's families spent a less money on necessities--food, clothing, and utilities--and more on appliances, recreation, and a host of new consumer products.
Because of this desire for Americans to start enjoying their life, a trend started where a larger portion of the public started to work to live instead of living to work. As Americans were spending more money, they were not saving as much money as they had in the past. The 1920s made it ok to buy goods without actually having the money to do so, this trend would continue until today. However, Americans got caught up in the spending and it would lead them into debt. Many times families assumed that they would have money in the future to pay off bills, so they kept buying goods that they could not afford. They believed the economy would keep roaring and that they would always have their jobs and be earning money. Americans were buying recklessly and did not worry or even consider that this growth could stop. As more families went into debt, it caused a big problem by the end of the decade with the start of the Great Depression.
The Changing Economy
Before the 1920s, most Americans didn't like spending more money than what they had to. Families were more worried about providing food and shelter. For years, Americans had sacrificed during war by planting victory gardens, rationing food, having meatless days, and recycling. Since most technology had been too expensive until this time, Americans were used to making their own clothes and food. After WWI, America industries were booming in the 1920s to help rebuild our Allies. Now with Americans working in factories, earning better wages, and with the cost of “luxuries” decreasing because of the assembly line, Americans lived more freely. Like no other time in American history, the 1920s was a decade of spending- a “consumer culture” with society buying not only their needs but also wants.
Buying on credit
The desire to own all of the latest status symbols (something that showed that you were in a certain class- like upper/middle/lower) like cars, radios, and attending sporting events led to Americans going into debt (spending more money than what they had). Before the Great War, having debt was looked down upon. Usually if a family wanted to buy something like a car, they would have to save up their income and wait to buy it. But in the 1920s that changed, “Buy now, pay later" became the motto of many middle class Americans. Banks and companies started to offer the ability to buy a product in installments. Buyers would pay some money right away and then pay a little bit every month (sort of like how credit cards work today).
Impact of Advertisers
Advertising became an important job in order to sell these new products. Advertisers tried to convince Americans that the product was needed (make a want seem like a need). The famous example was the campaign for Listerine (mouth wash). Using a seldom heard term for bad breath — halitosis — Listerine convinced thousands of Americans to buy their product. Consumers might not have known what halitosis was, but they surely knew they did not want it.
Advertisers were trying to create demand- they wanted Americans to go out and buy their product because they thought they needed it. Radio became an important new means of communicating a business message. Many companies used Hollywood film stars to sell products. Advertisers used campaigns to convince the public that “they would hardly miss the money” by making payments by installments trying to influence Americans to buy these wants.
Activities
Outside of just buying material goods, more Americans were spending money on fun activities and fads. One of the most popular trends of the decade was the dance marathon. The longest marathons lasted thirty-six hours or more. The first Miss America Pageant was staged in Atlantic City in 1921. One of the most bizarre fads was flagpole sitting. The object was simple: be the person who could sit atop the local flagpole for the longest period of time. Fifteen-year-old Avon Foreman of Baltimore set the amateur standard — ten days, ten hours, ten minutes, and ten seconds.
Other fads included crossword puzzles, book of the month clubs and investing in new magazines like Time and Reader’s Digest. However, the most popular craze of the 1920s was the growth of movies. Initially movies were silent action films, but as the decade continued, so did the technology. The 1920s produced the first movie with sound- The Jazz Singer and by 1928, Walt Disney introduced Mickey Mouse in Steamboat Willie.
Spectator sports also were a luxury Americans enjoyed earning the 1920s another nickname- the “Golden Age of Sports”. While boxing was popular with stars like Jack Dempsey, golf with Bobby Jones and Walter Hagen, team sports really were popular. Professional football began in the 1920s, and baseball became Americans pastime with superstars like Babe Ruth and Ty Cobb. Not only did Americans spend their time and money going to these events, they also gathered around the radio to listen if they could not attend. Americans also tuned in to hear other exciting news in 1927 when Charles Lindbergh completed a solo nonstop flight across the Atlantic Ocean in his plane the Spirit of St. Louis placing him as an American idol.
Results
The nation's families spent a less money on necessities--food, clothing, and utilities--and more on appliances, recreation, and a host of new consumer products.
Because of this desire for Americans to start enjoying their life, a trend started where a larger portion of the public started to work to live instead of living to work. As Americans were spending more money, they were not saving as much money as they had in the past. The 1920s made it ok to buy goods without actually having the money to do so, this trend would continue until today. However, Americans got caught up in the spending and it would lead them into debt. Many times families assumed that they would have money in the future to pay off bills, so they kept buying goods that they could not afford. They believed the economy would keep roaring and that they would always have their jobs and be earning money. Americans were buying recklessly and did not worry or even consider that this growth could stop. As more families went into debt, it caused a big problem by the end of the decade with the start of the Great Depression.
Works Cited:
http://ushistory.org/us/46h.asp
http://etext.virginia.edu/journals/EH/EH37/Murphy.html
http://www.gilderlehrman.org/teachers/module17/intro_pop18.html
http://www.adclassix.com/sitemap.htm